In this week’s Your Overseas Dream Home Digest…
- Your Questions Answered on the Rental Season in Kotor
Over the past week, I’ve been making the investment case for Montenegro’s Bay of Kotor.
Billions of euros have poured into the bay, transforming a former naval base into Porto Montenegro and creating luxury marina communities along its shores…
A powerful wave of transformation is rolling south from Croatia…
And mountains, water and protected history place hard limits on new development.
It’s here that I’ve negotiated an exclusive, off-market deal for members of my Real Estate Trend Alert (RETA).
If you don’t know RETA, it’s a group I founded for folks like me who recognize the vast potential of overseas real estate… who recognize that there’s always opportunity somewhere when you look everywhere.
Using the group-buying power of all RETA members, I can negotiate first-in, off-market deals from developers with exclusive pricing that ordinary buyers never see.
Like the upcoming deal in the Bay of Kotor…
Montenegro’s Bay of Kotor combines dramatic natural scarcity with growing international demand. I’m bringing RETA members a deal here on Wednesday at 1 p.m. ET.
The Tuscan-inspired community is called Royal Town Kotor.
Its planned amenities include an infinity pool, spa, state-of-the-art gym, yoga and Pilates studio, kids club, entertainment room, restaurant and firepit. A shuttle will connect owners to the beach club.
We have studios from €168,925 and two-beds from just €362,663. I expect gains of €91,075 and €197,337, respectively, five years after delivery. There’s exclusive financing for RETA members too.
This deal opens to RETA members this Wednesday, August 26, at 1 p.m. ET.
And the case for this bay is compelling…
You see, Europe’s established Rivieras have nowhere left to grow. Their best land is gone, prices are among the highest on Earth, and their crowded marinas were built for an earlier generation of boats.
Yet across the Adriatic, a new Riviera is emerging with everything a 21st century Riviera needs: beauty, glamour, international access, high-end infrastructure and genuine scarcity.
Unlike its established counterparts, it is still at an early stage in its transformation…
Tucked away between a cluster of former Yugoslavian countries, Montenegro sits across the Adriatic from Italy, with Croatia to the north and Albania to the south.
Europe Has a New Riviera
Montenegro’s Bay of Kotor has everything a Riviera needs.
Mountains fall almost vertically into sheltered blue water. Medieval stone towns line the shore. Superyacht marinas, 5-star hotels and sophisticated restaurants have appeared alongside its palaces and fortified walls.
When I first visited this coastline in the late 1990s, there were few tourists. Today, wealthy buyers and visitors from around the world are discovering it. Yet outside the bay’s ultra-luxury enclaves, prices remain far below those on the French and Italian Rivieras.
That combination—extraordinary beauty, rising international demand and comparatively accessible prices—is why I call the Bay of Kotor Europe’s New Riviera.
Take your first look at the Riviera rising in Montenegro.
Royal Town Kotor is within easy reach of three international airports all of which have seen big jumps in the numbers of passengers as first Croatia and then Montenegro were discovered.
The Billionaire Who Couldn’t Park His Yacht
A few years ago, Canadian billionaire Peter Munk had a problem most of us would like to have. He owned a yacht but could not find a suitable place to berth it in the crowded Western Mediterranean.
So he got in his helicopter and scouted the Adriatic coastline, looking for the right place to build a marina for the world’s biggest boats and the people who own them.
He found an old Soviet naval base in the Bay of Kotor and did a deal.
Munk transformed that base into Porto Montenegro, now a world-class superyacht marina surrounded by hotels, restaurants, shops and luxury residences.
If Porto Montenegro were the only one, you might call it a one-off.
It isn’t.
Round the bay at Portonovi, there’s a D-Marin superyacht marina, the One&Only resort and real estate listing into the millions. At Luštica Bay, there’s another marina and an entire 5-star community. Smaller marinas around the bay have also been built or rebuilt for the luxury-yacht market.
See how one billionaire’s search for a yacht berth helped transform the bay.
Porto Montenegro transformed from a former naval base into a world-class marina surrounded by luxury residences, restaurants and boutiques
Why the Money Is Moving Beyond Monaco
Monaco and Europe’s established Rivieras remain magnets for wealth. But their best land is long gone, prices are among the highest on Earth and many of their marinas were built for an earlier generation of boats.
The wealthy need somewhere new to go.
As we’ve seen from Peter Munk’s example, this is not about finding somewhere cheaper. When Monaco could not accommodate his yacht, he looked across the Adriatic to the Bay of Kotor.
Today, modern superyacht marinas and luxury resorts are helping turn the bay into a Riviera for the 21st century.
In one sense, this is nothing new. Venetian sea captains once built palaces along the bay, while Austro-Hungarian resorts catered to Europe’s elite. Wars and communism interrupted that history.
Now the international money has returned—and Kotor offers the beauty and glamour of a mature Riviera at a much earlier point in its transformation.
See why the money is moving beyond Monaco.
The baroque palaces lining the town of Perast’s waterfront were built by wealthy sea captains during the bay’s centuries under Venetian influence. This coastline is not discovering wealth for the first time.
The Path of Progress Rolls South
One of the most powerful forces I follow is what I call a “Path of Progress.”
A Path of Progress is anything that makes a place easier to get to or more desirable.
On the Adriatic, I’ve been tracking a Path of Progress that has been rolling south from Croatia.
Last year, Croatia welcomed 21.8 million tourists. Dubrovnik Airport passed three million passengers for the first time, and United Airlines now connects the city directly with New York.
As Croatia’s southern coast becomes busier and more expensive, visitors, developers and buyers are looking across the border.
Montenegro’s access is improving too. British Airways now connects Tivat with Heathrow, Iberia has added Madrid, Wizz Air has established.a Podgorica base and major road improvements are under development.
Follow the Path of Progress from Croatia into Montenegro.
Dubrovnik, Croatia, is just across the border from the new RETA opportunity. Millions of tourists. Direct flights from the U.S. Real estate prices that soared. The Path of Progress has rolled down the coast to Europe’s Newest Riviera.
The Buyers Transforming Europe’s New Riviera
The ultra-wealthy helped put the Bay of Kotor back on the international map. Porto Montenegro, Portonovi and Luštica Bay brought superyacht marinas, 5-star resorts and global luxury brands to its shores.
Now a much larger group is following.
I call them the “mobile affluent”: successful professionals who can earn in one country, invest in another and divide their time among several desirable places.
They want natural beauty, good restaurants and easy international access. They also want pools, gyms, beach clubs and professional management.
But most new development around the bay has targeted the ultra-rich. One-bed apartments list for €850,000 at Portonovi and close to €1 million at Porto Montenegro.
There is remarkably little for the affluent market beneath it. That’s where the new RETA deal comes in…
Meet the mobile affluent—and see the gap their arrival is creating.
Amenities at Royal Town Kotor will include a firepit, state-of-the-art gym, spa, infinity pool, yoga and Pilates studio, kids club, entertainment room, a restaurant and shuttle to the beach club. Exactly what the mobile affluent are looking for. (Renders should not be considered final but give us a great idea what to expect.)
A Moat Carved Into the Landscape
Billionaire investor Warren Buffett looks for businesses with a “moat”—an advantage competitors cannot easily reproduce.
Real estate can have moats too.
Around the Bay of Kotor, mountains descend directly into the water, leaving remarkably little flat land. Kotor’s historic region is UNESCO-listed, and strict local planning controls restrict development.
Future developers cannot manufacture more coastline, move the mountains or remove the historic towns. Much of the remaining prime land has already been acquired by major luxury groups.
Kotor’s beauty creates demand. Its geography and protected history restrict the competing supply.
That’s a powerful real estate moat to have around your investment.
See why Kotor has such a powerful real estate moat.
Kotor’s UNESCO-protected old town sits between the mountains and the bay. Strict building controls help preserve its centuries-old character—and keep high-quality new real estate scarce.
The Life They’re Coming For
Around the Bay of Kotor, there’s so much to do that the main difficulty is deciding what to do first.
You can wander among the medieval churches, Venetian palaces and café-filled squares of Kotor’s Old Town. Behind it, 1,350 steps climb to San Giovanni Fortress and a panorama across the bay.
The Kotor–Lovćen cable car carries you from the coast into the mountains in 11 minutes.
On the water, boats run to baroque Perast, Our Lady of the Rocks and the Blue Cave, where sunlight turns the sea an intense blue.
Then there are Luštica’s beaches, seafood lunches beside the water, hiking trails, canyoning and evenings among the restaurants and superyachts at Porto Montenegro.
That variety gives visitors reasons to stay longer, return in different seasons and recommend the bay to others.
Spend a Saturday around the bay and experience the lifestyle for yourself.
In just 11 minutes, the Kotor cable car rises from the bay into the mountains. Royal Town Kotor sits close to the lower station—and the upcoming RETA deal there opens August 26 at 1 p.m. ET.
Your Questions Answered
Have a comment for me or my team? A question about owning overseas? Share it here. I’d love to hear from you. Here’s a question I got from a reader recently…
Jana P. asks: Hi Ronan. I’m interested in Montenegro as a place to buy three or four rentals. I know you have a new deal coming up there. But is Kotor mainly a summer rental market? What happens from November through March?
Ronan says: Thanks for your question, Jana.
The rental season in Montenegro starts around Easter and continues until the end of October with a peak during the summer.
The high influx of tourists during the summer months (June to August) sees nightly rates spike. The shoulder seasons (April, May, September, and October) also see a good number of visitors, especially those looking to avoid the peak summer crowds while still enjoying pleasant weather. The winter months (November to March) are the slowest, with fewer tourists due to cooler weather and higher chances of rain.
Europe on your doorstep. Tivat airport is just seven minutes away, and you have Dubrovnik up the coast connecting direct to the U.S.
At Royal Town Kotor—the new community where I’m bringing RETA members a deal—the developer projects a gross yield of around 16% on a two-bed condo. That is based on average annual occupancy of 48%, with nightly rates ranging from €250 to €398 depending on the season.
Those are gross projections, and you would need time to build occupancy, reviews and repeat business.
But there is nothing else like Royal Town Kotor here…nothing with the same unique combination of ideal location, resort-style amenities and stylish Tuscan-inspired design. And no one else is getting in at exclusive, RETA-only pricing…
That’s the advantage of being a RETA member.
So, Jana, if you’re considering buying three or four condos in the Bay of Kotor, the Royal Town Kotor deal opens exclusively to RETA members this Wednesday, August 26, at 1 p.m. ET.
Take a tour of Europe’s New Riviera. My team filmed on the ground so you could understand the story in a few minutes of video.
Wishing you good real estate investing,
P.S. If you have a question about Kotor, RETA deals, or buying real estate overseas or if you have suggestions for destinations my team and I should put on our scouting list, drop me a line here.
